Discover Financial Services Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Discover Financial Services (NYSE:DFS) will unveil its latest earnings on Thursday, June 23, 2011. Discover Financial Services is a credit card issuer in the United States and an electronic payment services company.

Discover Financial Services Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of 66 cents per share, a rise of twofold from the same quarter a year ago. Estimates range from profit of 53 cents per share to net income of 76 cents per share. Over the past three months, the consensus estimate has moved up from 51 cents. Over the past month, the consensus estimate has moved down from 63 cents. For the year, analysts are projecting profit of $2.74 per share, a rise of 124.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 31 cents, reporting profit of 84 cents per share against a mean estimate of net income of 53 cents per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $1.7 billion in revenue this quarter, a rise of 2.4% from the year ago quarter. Analysts are forecasting total revenue of $6.88 billion for the year, from last year’s revenue of $6.66 billion.

Analyst Ratings: nine out of 17 analysts surveyed (52.9%) have a buy rating on Discover Financial Services. This is below the mean analyst rating of 10 competitors, which average 72.8% buy ratings.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 0.5% to $2.12 billion in first quarter of the last fiscal year. The figure rose 38.9% in the fourth quarter of the last fiscal year from the year earlier, climbed 25.2% in the third quarter of the last fiscal year from the year-ago quarter and 40.8% in the second quarter of the last fiscal year.

Competitors to Watch: American Express Company (NYSE:AXP), Capital One Financial Corp. (NYSE:COF), Visa Inc. (NYSE:V), SLM Corporation (NYSE:SLM), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), JP Morgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Nelnet, Inc. (NYSE:NNI), CompuCredit Holdings Corp (NASDAQ:CCRT), and The Student Loan Corp. (NYSE:STU).

Recent Price Movement: From a month ago, the stock price has dropped $2.81 (-11.1%) from $25.33 on May 18, 2011 to $22.52 on June 10, 2011. The stock price saw one of its best stretches over the last year between October 29, 2010 and November 8, 2010 when shares rose for seven-straight days, rising 7.3% (+$1.28) over that span. It saw one of its worst periods between June 1, 2011 and June 6, 2011 when shares fell for four-straight days, falling 4.3% (-$1) over that span. Shares are up $4.04 (+21.9%) year to date.

(Source: Xignite Financials)

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